Form 49 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form 49 is the application by which an assessee opts for the safe harbour rules. It carries the assessee's particulars in Part A, and in Part B the option itself, the tax years, and a transaction-wise table for each eligible international transaction, eligible specified domestic transaction or eligible business. This article describes the form as printed, as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked.
Form 49 is cited as "". Rule 90 has it furnished to the Assessing Officer and rule 91 to the Director General of Income-tax (Systems) for information technology services. In its verification the signatory proposes to opt for the safe harbour rules under section 167 read with rules 86 to 102, and a Certification by the chief executive officer or chairman and managing director follows. The tables carry only what the transaction needs.
The rules and the section
Rules 90 and 91 provide that Form 49 is furnished, complete in all respects, on or before the due date in section 263(1)(c); see rules 90 to 93 on the procedure and exclusions. Rules 98 and 101 extend the option to specified domestic transactions and to eligible businesses; they are explained in rules 94 to 98 and rules 99 to 102. The definitions are in rule 86, eligibility in rules 87 and 88 and the margins in rule 89. The verification names section 167; see sections 167 to 169 on safe harbour rules and advance pricing agreements. If you are considering opting in, our tax planning advisory team can check each table against the rules before the form is signed.
Part A: Particulars of the person
Seven rows: 1 name (Note 1: full name of the eligible assessee); 2 address (Note 2 lists its elements); 3 Permanent Account Number; 4 nature of business or activities; 5 status (Note 3: individual, Hindu undivided family, company, firm, association of persons or body of individuals, local authority, artificial juridical person, Government, trust, limited liability partnership); 6 e-mail Id; 7 contact number with country code.
Part B: Other information
| Section | Rows | What is asked |
|---|---|---|
| I. Option for safe harbour | 8 | Safe harbour is opted for the following (select one or more; Note 4): 1. Eligible International Transaction (EIT), either (i) provision of information technology services or (ii) others; 2. Eligible Specified Domestic Transaction (ESDT); 3. Eligible Business (EB). A section of Part B is filled only if its transaction is selected here |
| II. Tax Year(s) | 9 | (i) For an EIT other than information technology services, an ESDT or an EB: the tax year and the date of furnishing the return of income for it. (ii) For an EIT being information technology services: the tax years for which the option is exercised (Note 5) |
| III. Eligible International Transaction | 10 | Information technology services: operating revenue split over the four service kinds (total not to exceed two thousand crore rupees); a table for each associated enterprise |
| 11 | Other EITs, selected from Note 6: contract research and development on generic pharmaceutical drugs; manufacturing and export of core auto components; non-core auto components; data centre services. Nature and a table for each | |
| 12 | Intra-group loans: whether, for a foreign currency loan, loans to all associated enterprises exceed two hundred and fifty crore rupees as on 31 March; table of each enterprise with credit rating details, whether a rating is available and, for a rupee loan with no rating, whether aggregate loans exceed one hundred crore rupees as on 31 March, the interest rate charged, and the amount and currency of the loan | |
| 13 | Corporate guarantee: whether the amount covered by the guarantee exceeds hundred crore rupees; table with the enterprise, credit rating rank and agency (Note 8), the rate of commission or fee charged and the amount of the guarantee | |
| 14 | Low value-adding intra-group services: whether the entire value including mark-up not exceeding 5% exceeds ten crore rupees; the accountant's certificate under rule 89(2) (serial number 8, column C) uploaded as an annexure; table with amount excluding mark-up, mark-up, amount including mark-up, and the date and UDIN of the accountant's certificate | |
| IV. Eligible Specified Domestic Transaction | 15 | Supply, transmission or wheeling of electricity: the enterprise and the order of the Appropriate Commission determining the tariff or approving the methodology (date, type and validity of order) and the amount received, receivable, paid or payable |
| 16 | Purchase of milk and milk products: total purchase for which the option is exercised and five Yes/No questions on how the rate is fixed (quality, irrespective of quantity, share percentage or voting power) and whether it is routinely declared by the co-operative society in public | |
| V. Eligible Business | 17 | Nature of the business (Note 9: selling of raw diamonds, or storage of components in a warehouse in a custom bonded area for sale to a contract manufacturer); gross receipts; profits and gains chargeable under the head profits and gains of business or profession, which shall be at least 4% of the gross receipts for selling raw diamonds and 2% for the storage activity; and four Yes/No confirmations by the assessee |
The four confirmations at row 17 are that no further deduction under the listed provisions (including Schedules IX and X) is claimed; that written down value is deemed calculated as if depreciation had been claimed; and that no set off of unabsorbed depreciation, or of loss from other business or another head, under the listed provisions is claimed. The form prints the list of provisions.
The associated-enterprise tables give name, address, PAN if available, Taxpayer Identification Number or equivalent, and country or region (Note 7); for information technology services and the other EITs they also show operating revenue, operating expense and the operating profit margin (OP divided by OE).
Verification and Certification
Verification. The signatory, on behalf of the eligible assessee, states that he proposes to opt for the safe harbour rules under section 167 read with rules 86 to 102, that the particulars are as in Parts A and B, and affirms as far as he knows that the information is true and correct and no relevant fact has been concealed, in the capacity and with the PAN stated, and that he is competent to verify and submit the form. Place, date, signature, name and designation follow.
Certification. The Chief Executive Officer or Chairman and Managing Director of the eligible assessee certifies the information on the same footing and ticks the relevant boxes: (1) the aggregate operating revenue of the information technology services transaction does not exceed two thousand crore rupees as specified in rule 89(2) (serial number 1, column C); and four insignificant-risk statements from rule 87(2): the foreign principal performs most of the economically significant functions (clause (a)); it or its associated enterprises provide funds, capital and assets and the assessee is only remunerated (clause (b)); the assessee works under its direct supervision (clause (c)); and the assessee has no legal or economic ownership of any intangible or research outcome (clause (e)).
Notes 4 to 13
| Note | Content |
|---|---|
| 4 to 6 | Select one or more transactions in row 8 and fill only those sections; row 9(ii) applies only to information technology services; the four EIT choices at row 11 each get a block |
| 7 | A no tax or low tax country or territory (rule 86), or one notified under section 176, gets no safe harbour for the transaction with an associated enterprise there (rule 92) |
| 8 to 10 | Columns G and H of row 13(iii) apply only if row 13(ii) is Yes; the Eligible Business choices at row 17; a specified territory may be mentioned |
| 11 to 13 | The form is applied before the Assessing Officer or the Director General of Income-tax (Systems), as the case may be, and signed and verified by the person competent to verify the return under section 265; amounts in rupees; some information pre-filled |
Example. Fairhaven Cloud Services Private Limited (invented) provides data centre services to a foreign affiliate. It ticks row 8 for an eligible international transaction (others), gives the tax year and return date at row 9(i), chooses data centre services at row 11 and fills the associated-enterprise table.
Need help with the safe harbour option?
Each table in the form depends on the rules' margins, ratings and limits, and on the timing in rules 90 and 91. Our tax planning advisory team can help you check the option before it is filed.
Key takeaways
- Form 49 opts for safe harbour; it is cited under rules 90, 91, 98 and 101.
- Part B has five sections: option, tax years, eligible international transactions, eligible specified domestic transactions and eligible business.
- Only the sections for the transactions selected at row 8 are filled.
- The verification names section 167 read with rules 86 to 102; the certification is by the chief executive officer or chairman and managing director.
- The form is signed and verified by the person competent to verify the return under section 265.
Read next
- Rule 89: safe harbour margins and rates
- Rules 90 to 93: procedure and exclusions
- Form 48: accountant's report on international and specified domestic transactions
- Rule 86: safe harbour definitions
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.